Context: Punjab has utilised 100% of the Rs 4,713 crore allocated to it by the Centre under the Agriculture Infrastructure Fund (AIF) scheme.

Background: –

• As of February 28, with 21,740 projects, Punjab is at the No.1 position in the country for the highest number of sanctioned projects, said the state government.

Key takeaways

• The Agriculture Infrastructure Fund (AIF) is a central sector scheme, started in 2020 with an aim to provide medium to long-term financing for agriculture infrastructure projects at the post-harvest stage.
• When the scheme was started, it was meant for post-harvest management and processing at the primary level, but now, integrated processing at the secondary level has also been included. 
• For example, a kinnow farmer could earlier get funds under the scheme for grading, waxing, and packaging of the crop (primary post-harvest processes), but since 2024, can also avail money to make and sell juices, jams, etc. out of his kinnow produce (secondary level).
• However, the secondary level funds are available only to those involved in the primary processing too.
• This scheme offers credit guarantees and interest subvention. Farmers, agripreneurs, primary agriculture cooperative societies, farmers producer organisations, start-ups, state sponsored public-private partnerships, state-agencies can apply for funds under this scheme.
• All loans under this financing facility have interest subvention of 3% per annum up to a loan limit of ?2 crores. This interest subvention is available for a maximum period of 7 years. In case of loans beyond ?2 crores, interest subvention is limited up to ?2 crores.
• Under the AIF, one can take benefits of other state and central subsidies as well. Credit guarantee support is through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) and National Bank for Agriculture and Rural Development (NABSanrakshan) Scheme.

Source: The Hindu